The Quindell Portfolio acquisition spree continued today with the purchase of medico-legal service iSaas Technology for nearly £5m.
Quindell, an alternative business structure following the acquisition of three law firms last year, said the move would allow it to offer a cloud-based SaaS (software as a solution) service to others in the market.
iSaaS was co-founded by former Russell Jones & Walker partner Adam Tulk, and its acquisition is being paid for by the issue of 38,057,143 Quindell shares (currently trading at 11.72p – valuing the shares at £4.46m) and the payment of £1.34 million in cash.
The shares will be subject to lock in of between 12 and 36 months. The iSaaS management accounts for the three months to 31 March 2013 forecast turnover of circa £0.5 million and profit before tax of circa £0.4 million. “The acquisition is expected to be earnings enhancing in the current year,” said a Quindell statement.
In November, iSaaS launched ‘ePIsource Legal’, using web-based technology to support the administrative function carried out by medical reporting organisations, separating the evidence procurement process from the expert analysis.
It continued: “Through its unique combination of service offerings, Quindell has already put in place outsourcing solutions for insurance companies, brokers and other intermediaries that survive the changes of legislation brought on by LASPO on 1 April 2013.
“iSaaS offers a similarly highly disruptive SaaS-based model that is effective post these changes for the legal profession, doctors and rehabilitation specialists as well as for insurance businesses that cannot replicate the Quindell model but want to operate legal practices in-house with their own independent iSaaS medical reporting network in support of their personal injury work.
“Quindell’s strategy is to provide outsourced services, consultancy and technology directly to its customers, whilst also offering them alternative models including SaaS-based solutions such as those provided by iSaaS. As a result, Quindell has grown its share of the insurance outsourcing market over the last 12 months and also pursued a strategy of providing licenced software to other market participants in order that, as a group, it can benefit from market share beyond that which it is servicing directly.
Rob Terry, the chairman and chief executive of Quindell, said: “Our strategy is to provide outsourced services, consultancy and technology directly to our customers, whilst also offering them alternative models including SaaS-based solutions such as those provided by iSaaS…
“Over the last year we have grown our share of the insurance outsourcing market, but we are similarly comfortable with a strategy of providing licenced software to other market participants.”